Welcome to Free Agent Nation

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(No Transcript)
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Welcome to Free Agent Nation
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Who are the free agents?

• Self-employed, independent contractors,
  part-timers, temps, working from home, holding
  multiple jobs
• One-third of Canadian work force
• CBC News Online, www.cbc.ca/news/work/disappearing
  jobs

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Multi-tasking is normal

• No more 9 to 5 hours
• Work demanding immediate attention comes at you
  on Saturday morning or Tuesday midnight
• You work at home in pajamas and sleep in your
  office

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Whats the impact?

• Feast or famine
• Hustling like crazy, working to exhaustion and
  begging your customers for money
• Limited access to benefits such as paid
  vacations, pensions and insurance

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Youre responsible for your own retirement
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Why put money into an RRSP?

• You pay more in taxes in your lifetime than you
  do for food, clothing and shelter combined
• An RRSP lowers your taxes today and provides a
  disciplined way to save for the future

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RRSP lowers your net income

• Increases your non-refundable tax credits
  (medical expenses, charitable donations, tuition
  amounts)
• Reduces benefit bleeding (clawbacks of
  Employment Insurance payments)
• Acts as emergency fund if youre laid off
• Helps you buy a house or go back to school

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Who doesnt need an RRSP?

• You pay low tax today
• Your tax bracket will go up when you retire
• You have a decent indexed pension plan
• You expect to get a big inheritance

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What are the alternatives?

• Never retire
• E-tirement
• Build a portfolio outside an RRSP
• Pay off your house and downsize
• Borrow against your home equity
• Reverse mortgage

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Where to get the money?

• Contribute year-round
• Pay yourself first
• Take out RRSP loan
• Make a catch-up contribution
• Boost refund with a labour-sponsored fund

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How do you invest the money?

• Make the RRSP contribution for 2002 and then
  decide where to put it

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Look before you leap

• Review your risk level

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Remember rule of 72
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Find a good financial adviser, someone who.

• Listens to you
• Doesnt push
• Keeps in touch
• Sends statements you can understand
• Tells you how well youre doing
• Uses realistic assumptions

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Dont forget RESP for the kids
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Work on your FLQ(financial literacy quotient)

• Surf the Web and use calculators
  Fiscalagents.com, Moneysense.ca
• Learn the lingo Investopedia.com
• Follow the breaking business news
• Read a good book on taxes, investing,
  entrepreneurship, money management

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Celebrate your successes

• Track your purchases
• Trim back spending
• Control credit use
• Save a little at first, then save more
• Measure your progress
• Keep score

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Now get going!
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Questions